Payments to millions of parents across the country start Thursday, July 15.
The payment will offer support to struggling families during the pandemic as part of President Joe Biden’s $1.9 trillion American Rescue Plan.
Here are 7 things to know about the child tax credit:
1.) The child tax credit has been increased from $2,000 to $3,000 for children over 6, and to $3,600 for children under 6. It also expands the ages of children eligible, raising the age limit from 16 to 17.
2.) The credit no longer phases in with income, but instead is fully refundable. This means that low-income families and families that don’t file taxes – those that make less than the standard deduction of $24,800 – can now receive the full amount of the credit.
3.) Most households will not need to do anything to get the increased credit. Families who are eligible should have already received letters from the IRS explaining the changes.
4.)How long will the child tax credit last? Monthly payments will be made through December of this year.
5.) As for income, the biggest beneficiaries of the changes to the child tax credit will be low-income families and non-filers. For married couples, the increased tax credit starts phasing out at a household income of $150,000.
6.)Important to know: each dollar of payment you get now will reduce how much child tax credit you get when you file your taxes. You can opt out of the monthly system on the IRS website.
7.) It’s a lot of information to take in, but there’s a way to calculate your payment. Click here to find out how much could you receive.
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Click here for more of what parents should know.
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Originally published at https://abc7ny.com/child-tax-credit-irs-2021-stimulus/10887782/ on .